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EU: After bank shortcomings, Commission to force lenders to facilitate account switching

By  |  May 8, 2013
EU: After bank shortcomings, Commission to force lenders to facilitate account switching

The European Commission has announced that the regulator is resorting to legislating to force the continent’s lenders to facilitate the account switching process and reduce paperwork for customers, noting that the banks have failed to solve the issue on their own. In a move intended to ensure equal access to basic bank accounts throughout Europe, the Commission will force the banks not only to facilitate the process of switching banks, but will also require that those banks increase their transparency on account fees. The regulator hopes to strengthen competition in the market with the reforms. A recent study from the watchdog revealed 32 percent of a surveyed sample of bank websites did not provide any information on how to switch bank accounts for consumers. In a statement, EU financial services head Michel Barnier said the move will hopefully lead to “better offers from banks and lower costs.”

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